Prem Prakash Sethi Vs ACIT (ITAT Delhi)
In the case of Prem Prakash Sethi Vs ACIT (ITAT Delhi), the Income Tax Appellate Tribunal (ITAT) delivered an order granting partial relief to the assessee, Mr. Prem Prakash Sethi, concerning unexplained jewelry and cash discovered during a search. The appeal was filed against the order of the Commissioner of Income Tax (Appeals)-31, New Delhi (CIT(A)), dated September 24, 2021, which arose from the assessment order dated December 31, 2019, passed by the Assessing Officer (AO) under Section 143(3) of the Income Tax Act, 1961, for the Assessment Year (A.Y.) 2018-19.
Grounds of Appeal: The appeal raised two main grounds:
- The CIT(A) upheld the addition made by the AO on account of unexplained jewelry under Section 69A to the extent of Rs. 22,20,698/-.
- The CIT(A) upheld the addition made by the AO on account of unexplained cash under Section 69A to the extent of Rs. 24,91,700/-.
Hearing and Submissions: During the hearing, the counsel for the assessee presented that the AO made the additions without considering the factual documents, which were later submitted to the CIT(A). However, the CIT(A) only partially accepted these documents, leading to sustained additions.
Jewelry Additions: The search at the assessee’s residence uncovered jewelry weighing 1903.97 grams, valued at Rs. 70,00,582/-, of which 1009.378 grams were seized, valued at Rs. 31,65,912/-. The family members include the assessee, his wife, two sons, and his mother. The CIT(A) granted relief for 1300 grams, attributing 500 grams to the wife, 100 grams each to the assessee and his two sons, and 500 grams to his mother. The remaining 603.97 grams, valued at Rs. 22,20,698/-, were considered unexplained and added to the assessee’s income.
